Reverse mortgages (sometimes called "home equity conversion loans") give older homeowners the ability to tap into built-up equity without selling their home. Deciding how you'd prefer to to receive your funds: by a monthly payment amount, a line of credit, or a one-time payment, you can take out a loan amount determined by your home equity. Paying back your loan is not necessary until the borrower puts his home up for sale, moves (such as to a retirement community) or dies. At the time you sell your property or is no longer used as your main residence, you (or your estate) must pay back the lending institution for the money you got from the reverse mortgage in addition to interest among other fees.
Generally, reverse mortgages are appropriate for borrowers at least 62 years of age, have a small or zero balance owed against the home and use the property as your main living place.
Reverse mortgages are appropriate for homeowners who are retired or no longer bringing home a paycheck and have a need to add to their income. Rates of interest may be fixed or adjustable while the money is nontaxable and doesn't interfere with Social Security or Medicare benefits. Your house is never in danger of being taken away from you by the lender or sold without your consent if you live past the loan term - even if the current property value dips below the balance of the loan. Contact us at (619) 688-0011 if you want to explore the benefits of reverse mortgages.
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